Correlation Between Praram 9 and Syntec Construction
Can any of the company-specific risk be diversified away by investing in both Praram 9 and Syntec Construction at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Praram 9 and Syntec Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Praram 9 Hospital and Syntec Construction Public, you can compare the effects of market volatilities on Praram 9 and Syntec Construction and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Praram 9 with a short position of Syntec Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praram 9 and Syntec Construction.
Diversification Opportunities for Praram 9 and Syntec Construction
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Praram and Syntec is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Praram 9 Hospital and Syntec Construction Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntec Construction and Praram 9 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Praram 9 Hospital are associated (or correlated) with Syntec Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntec Construction has no effect on the direction of Praram 9 i.e., Praram 9 and Syntec Construction go up and down completely randomly.
Pair Corralation between Praram 9 and Syntec Construction
Assuming the 90 days trading horizon Praram 9 Hospital is expected to generate 2.67 times more return on investment than Syntec Construction. However, Praram 9 is 2.67 times more volatile than Syntec Construction Public. It trades about 0.15 of its potential returns per unit of risk. Syntec Construction Public is currently generating about -0.13 per unit of risk. If you would invest 2,406 in Praram 9 Hospital on September 2, 2024 and sell it today you would earn a total of 169.00 from holding Praram 9 Hospital or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praram 9 Hospital vs. Syntec Construction Public
Performance |
| Timeline |
| Praram 9 Hospital |
| Syntec Construction |
Praram 9 and Syntec Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praram 9 and Syntec Construction
The main advantage of trading using opposite Praram 9 and Syntec Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praram 9 position performs unexpectedly, Syntec Construction can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Syntec Construction will offset losses from the drop in Syntec Construction's long position.| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital Public | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital Public |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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